The assignment has two parts: PART 1: COMPARATIVE ANALYSIS CASE The Bristol-Myers Squibb Company (hereafter BMS) and Merck & Co. The Balance Sheets and Statements of Cash Flows of BMS and Merck are attached. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. (Write your answer with question#) a) What method of computing net cash provided by operating activities does BMS use? What method does Merck use? Explain. What were the amounts of cash provided by operating activities reported by BMS and Merck in 2020? b) What was the most significant item reported by BMS and Merck in 2020 in their investing activities sections? What is the most significant item reported by BMS and Merck in 2020 in their financing activities sections? c) What were these two companies' trends in net cash provided by operating activities over the period of 2018-2020? You may use the percentage change in support of your answer. d) Where is "depreciation and amortization" reported by BMS and Merck in their statements of cash flows? What is the amount and why does it appear in that section of the statement of cash flows? e) Based on the information contained in BMS and Merck's financial statements, compute the following 2020 ratios for each company. These ratios require the use of statement of cash flow data. (These ratios are available in Chapter 5 of the textbook.) Write the formula first and then show the computation (Detailed and elaborate computations are needed) a. Current cash debt coverage. b. Cash debt coverage. c. Free cash flow f) What conclusions concerning the management of cash can be drawn from the ratios computedin e)? PART 2: Also answer the following general questions not related to above case: ASC 230: Statement of Cash Flows 1. How is the information provided in the statement of cash flows different from the information reported in the income statement? 2. Why do you think most companies use indirect method of preparing statement of cash flows? 3. How do each of the three sections of the statement of cash flows relate to the Balance Sheet? 4. Net income is determined on accrual basis. However, net income is the first item on the statement of cash flows. Explain this obvious contradiction.